Gold Prices Drop on Higher Treasury Yields and Oil Prices

Gold prices dropped on Tuesday due to higher Treasury yields and oil prices. Spot gold fell by 0.4% to $4,397.42 per ounce as of 0624 GMT, while US gold futures for December delivery declined by 0.5% to $4,452.90.

The rise in Treasury yields made holding non-yielding bullion less attractive, and oil prices edged higher after Iran announced it would shift to a 'fully offensive' military posture following the breakdown of negotiations with the US.

ANZ analyst Soni Kumari noted that oil prices will remain a key factor keeping gold under pressure due to the uncertain situation in the Middle East. Market expectations around Fed policy rates are also crucial for gold, particularly technical levels.